Pollution Is a By-Product of Some Production Processes, So on This

question 373

Multiple Choice

Pollution is a by-product of some production processes, so on this count real GDP as measured

• A) is adjusted downward to take into account the pollution.
• B) is adjusted upward to take into account the expenditures that will be made in the future to clean up the pollution.
• C) tends to overstate economic welfare.
• D) tends to understate economic welfare.